THIRD RUNNER-UP Dangote: Making of Nigeria’s multinational brand

In an economic environment buffeted by multifarious impediments all of them daunting enough to even to the most astute entrepreneur, and in a continent perennially in quest of elusive Foreign Direct Investment, 2015 would herald that historic threshold when the Nigerian brand would not only come to its own, but also showcase its famed derring-do.

Thanks to the man with the Midas touch, Aliko Dangote 58, billionaire investor, philanthropist extraordinaire and Africa and Forbes richest man with a personal fortune of $25 billion, the Nigerian brand finally emerged as a success story across the continent and beyond. With a string of new factory openings in the outgoing year, Dangote Cement, finally emerged as a truly giant Nigerian multinational.

In March, it commissioned its $250m plant in the Pout district of Senegal, with the capacity to produce 1.5 million metric tonnes annually, designed to serve the markets in Senegal, Mali and the Gambia. Three months after, in June, it was the turn of the 2.5 million metric tonnes cement plant in the Oromia region, Ethiopia to be commissioned. This was followed in August with the opening of the 250 million-dollar (N48.75 billion) cement grinding plant in Douala, Cameroon and the foundation laying of its 200metre jetty in Douala. The Cameroon plant, with capacity to produce 1.5 million metric tonnes of cement per annum (mmtpa) was described by Dangote as the “largest Greenfield project in a neighbouring country with which we not only share a boundary but also a long history of brotherly relationship dating from our colonial days”. That same month, the group inaugurated its 1.5 million metric tonnes per annum (mmtpa) Zambian plant valued at $400 million with a 30 megawatts coal plant to power the factory.

And finally in October, the Dangote Group opened its $500 million dollar 3.0 million metric tonnes per annum cement plant located in Mtwara District of Tanzania. The plant, designed to double the country’s annual output of cement is also expected supply the domestic market and export to landlocked countries in the region. Part of the Tanzanian package was a 75MW coal-fired plant to power the cement factory. The plants in South Africa and Nepal in far-east Asia are said to be due for commissioning for next year.

Like the mustard seed, the story that began in the back streets of Kano with the chief visioner, Aliko Dangote, hawking sweets, and later to trading in rice, sugar and other commodities, the business has today grown into a rich harvest of industrial complexes with diverse interests in manufacturing, oil and gas, Information Communications Technology.

From a humble beginning which started when Aliko Dangote’s late illustrious grandfather, the late Alhaji Sanusi Dantata provided him with a small capital to start his own business in Kano in 1977, the Dangote brand has emerged with a global presence in 16 countries, employing over 10,000 people.

Understandably, when Nigerians talk of Dangote, they refer to the vast conglomerates of Dangote Transport Limited, Dangote Cement Plc. (accounting for over 60% of Dangote Group revenue); National Salt Company of Nigeria Plc.; Dangote Flour Mills Plc.; Dangote Sugar Refinery Plc.; ; Dansa Foods Limited; Dansa Food Processing Limited; Dangote Textiles Limited; Dangote Holdings Limited, and Dangote Oil & Gas Industries International which has since ventured into petroleum product refining – which, for obvious reasons, are more familiar. Also among the pack are the relatively less known Blue Star Limited, Dancom Technologies; GreenView International Company Limited with US$28+ million investment in cement factory in Ghana; Sephaku Cement Limited a South African cement company in which it has 64% shareholding; Alheri Engineering Limited and Kura Holdings Limited – all of them money spinners in their own right.

Only in recent times has the world begun to pay attention to Dangote Foundation, the philanthropic arm of the group where yearly, Dangote spends millions for worthy causes in educational and healthcare institutions, sinking of boreholes and awards of scholarships. The foundation is presently constructing a N7 billion state-of-the-art Operating Theatre and Diagnostic Centre at the Murtala Muhammed Specialist Hospital, Kano to be completed next year.

The case of the building materials manufacturing arm – Dangote Cement – is however different. It is unquestionably, the proverbial hen that spins golden eggs for the group; its flagship company etched its own mark in global business.

Today, Nigeria, courtesy of the Dangote Group, can boast of a truly multinational Nigerian company in Dangote Cement in the class of players like South Africa’s MTN (telecommunications) and DSTV (entertainment). Although a late entrant compared with the multinational Lafarge, Dangote Cement, thanks to the singular vision of its founder Aliko Dangote currently controls a huge chunk of the Nigerian market. Its Obajana plant, Kogi State, with an annual output of 13.25 Mt is reputed to be the largest in Africa.

For his immense contributions to the nation’s business development and for his determination to conquer new frontiers of business, Aliko Dangote is second runner up to The Nation’s Man of the Year.